Introducing KDVD: A New Way to Invest in Dividends in Today’s Market
By Charles LaRosa, Head of ETFs at Gabelli
If you follow the dividend ETF space, you know it’s crowded. There are currently 98 other dividend ETFs on the market, holding many of the same names and producing many of the same outcomes.
That’s precisely why we launched our newest ETF, the Keeley Dividend ETF (KDVD). KDVD is our answer to the question, “where can investors find quality dividends and compelling valuations”? To us, the answer is obvious: SMID-cap.
Why SMID-Cap Dividends
Small- and mid-cap companies don’t usually headline dividend conversations. But they have quietly become one of the most interesting corners of the market:
- Yields are higher than usual relative to large caps
- Valuations are far more reasonable
- Many businesses benefit from domestic growth themes like reshoring and infrastructure spending
Yet, most dividend ETFs simply ignore small- and mid-cap companies. KDVD is designed to take advantage of the current landscape by investing across the full spectrum of dividend paying stocks using a disciplined, research-driven framework.
How KDVD Approaches Dividends Differently
KDVD is managed by Thomas E. Browne, Jr., CFA and Brian P. Leonard, CFA, who have been managing dividend strategies together for more than 16 years. One thing we like about their framework is that it doesn’t hone in on one “type” of dividend stock but instead looks across the full dividend spectrum to invest in:
- Attractive companies where fundamentals drive the investment thesis
- Solid-steady names with reliable payouts
- Growers with room to expand dividends over time
- High-yield names supported by strong cash generation
This allows Tom and Brian to balance income, growth, and valuation across market cycles.
Why Now
Dividend strategies have lagged in recent years, and SMID-caps have spent a long stretch in the market’s shadow. Historically, that combination has led to strong forward returns. We believe this is a moment where a differentiated, research- driven approach to dividends can add real value.
Keeley Legacy with Gabelli Research Edge
The Keeley Gabelli relationship began in the mid-1960s when John L. Keeley, Jr. and Mario J. Gabelli, CFA were both sell side analysts with similar philosophies around putting clients first and research-driven investing. In May, the Keeley team officially joined the Gabelli Funds and have since employed a collaborative research process across our portfolios, enabling enhanced idea generation and deeper company coverage. KDVD offers investors a tax-efficient way to access high-quality, dividend-paying SMID-cap companies, reflecting the value we can create when two firms with a shared vision collaborate to meet evolving investor needs.
Learn More
To explore KDVD in more detail, including holdings and real-time performance, visit https://gabelli.com/ticker/kdvd.
To speak to a Gabelli representative, email us at invest@gabelli.com or call 1-800-Gabelli.
- Charles LaRosa
Head of ETFs, Gabelli
DISCLOSURES
Gabelli Funds, LLC is a registered investment adviser with the Securities and Exchange Commission and is a wholly owned subsidiary of GAMCO Investors, Inc.
Important Disclosures
- Shares of this ETF are bought and sold at market price (not NAV) and are not individually redeemed from the fund.
- Buying or selling ETF shares may require additional fees such as brokerage commissions, which will reduce returns.
- These additional risks may be even greater in bad or uncertain market conditions.
- Dividend paying stocks do not assure a profit or guarantee against a loss. Companies may choose to stop paying dividends at their own discretion.
You should consider the ETF’s investment objectives, risks, charges, and expenses carefully before you invest. The ETF’s Prospectus is available from G.distributors, LLC, a registered broker-dealer and FINRA member firm, and contains this and other information about the ETF, and should be read carefully before investing. To obtain a Prospectus, please visit https://www.Gabelli.com/funds/etfs or call 800-GABELLI.
Distributed by G.Distributors, LLC, a registered broker-dealer and FINRA member firm.
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